The past year was a pivotal time for U.S. upstream deal markets and the broader industry. Investors who funded the shale revolution over the past decade became increas­ingly vocal in advocating for pay­outs and to cut back on providing new capital. That flowed through to limited M&A and a challeng­ing reaction to deals for much of the year.

While Enverus tracked $96 bil­lion of U.S. oil and gas M&A in 2019, the annual total was sub­stantially skewed by Occidental Petroleum Corp.’s $57 billion ac­quisition of Anadarko Petroleum Corp. in May. Backing out the Occidental/Anadarko deal, 2019 saw $39 billion in deals or just one-half of the average $78 billion for annual U.S. oil and gas M&A over the past 10 years.

Occidental’s acquisition of Anadarko high­lighted 2019’s consolidation in the shale patch. The deal is in the ballpark of Exxon Mobil Corp.’s 2009 acquisition of XTO Energy Inc. as the most spent on shale in a deal. Occidental saw 75% of Anadarko’s value in shale, includ­ing the Permian Basin. After allocating value across Anadarko’s portfolio, Enverus estimat­ed the Delaware acreage price at $58,300 per acre, in line with top-tier Permian corporate sales in past years.

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